Goldman Sachs to issue notes tied to a bitcoin-trust ETF

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The major investment bank Goldman Sachs has filed to issue notes whose payments depend on the performance of the ARK Innovation ETF. The ARK Investment Management exchange-traded fund, actively managed, includes, among its holdings, shares of the trust that owns bitcoin.

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According to a document filed with the Securities and Exchange Commission (SEC), the term of the instrument will be five years. Early redemption may be possible under certain conditions. The issue size is $15.7 million.

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The ARK Innovation ETF strategy implies investments in companies deriving value from breakthrough innovations and developing technologies, including blockchain.

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«The ETF’s price dynamics may indirectly depend on bitcoin prices through the trust’s investments. The degree of this risk can vary over time and is not always reflected in the ETF’s structure.», — the filing states.

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As of now, the SEC website lists information on 81 bitcoin-linked notes and instruments issued by Goldman Sachs since the start of the year.

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Earlier in March, the bank’s chief operating officer spoke of growing interest among clients in digital assets and the need to comply with regulatory requirements.

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In January, media reports said that Goldman Sachs are considering entering the cryptocurrency market. In particular, they are examining the possibility of launching a custodial service and a cryptocurrency-based exchange-traded fund.

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Earlier, on 18 March the SEC began reviewing VanEck to launch a bitcoin ETF.

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